UNIT 2: THE NEGOTIATION PROCESS AND
RELATIONSHIPS.
STUDENT: ESPINOSA CHÁVEZ JORGE LUIS
TEACHER: MARAVILLA MARICELA GALICIA
GROUP: 4NV76
The Negotiation Process: These are the phases that will be developed during the
confrontation with the client.
◦And with this we start with the Preparation: It is defined what the organization wants to achieve, establishing quantifiable and measurable
objectives, establishing range or limits to which we can negotiate, trying to discover the objective of the counterparty, it is important to define how far
we are willing to give up without compromising the organization. In the preparation phase you have to define what you want to achieve and how to
achieve it, establishing the own objectives, what types of discounts can be offered if necessary and to what extent it is possible to compromise; It is
very important to try to discover the opponent's objectives.
◦The Discussion: In this phase that is normally called conversation, exchange or presentation, trying to remove aggressiveness from the word
discussion, the issues that separate the parties are explored to understand their attitudes and interests.
◦Signals: The signal is a means that negotiators use to indicate their willingness to negotiate about something; it is a message that must be interpreted
by the person who receives it.
◦The proposals: Are what is negotiated, the discussions are not negotiated, although the proposals may be the subject of discussion. The discussion is
exited by a signal that leads to a proposal, that is, to an offer or request different from the initial position; Risky offers should be avoided in the first
proposals, and these should be cautious and exploratory since, in any case, they will be developed later and are likely to be accepted.
Continuation
◦The exchange: It is about obtaining something in exchange for giving up something else. Any proposal or concession must
be conditional, that is, for everything that is granted, something must be obtained in return.
◦Closing and agreement: It is the most frequent form in negotiations; It is equivalent to ending the exchange phase by
offering a concession to achieve an agreement.
◦Types of Negotiation:
◦At this point, the Types of Negotiation are Phased: Of which there are two.
◦Explicit and tactical.
◦Explicit: An exchange of offers and counteroffers to find an acceptable solution, as exists in collective
denials.
◦Tactical: Where both parties do not define the relationship as a business but as a strategy to continue a lasting
relationship.
Negotiation Stages
◦Preparation: In this stage, several elements will be developed, such as gathering information, clarifying our offers,
getting to know our counterpart, defining strategies and positions, preparing a plan.
◦Development of the negotiation: It is the right moment that we face the client, from the greeting and introductions, the
way to break the ice, the way to approach the client, how to present our idea and defend our positions.
◦Closing: The way to conclude the negotiation or make the decisions to withdraw on time.
◦NEGOTIATION TECHNIQUES
◦We must develop a separation of emotions or manage them.
◦Do not focus on positions if they are not in your interests.
◦Generate a wide range of alternatives without going beyond the limits.
◦We must always redirect and return to the objectives of the negotiation.
PLANNING AND PREPARATION FOR NEGOTIATION
◦A good plan will consist of analyzing all the moments of the negotiation and the client's needs, in
addition to current contingency plans according to the situations that arise during the negotiation.
◦ASSERTIVITY TO NEGOTIATE:
◦Having assertive behavior for a negotiator is very important, since it is made up of simple elements such
as:
◦Knowing how to listen: This will help us have time for analysis to make good decisions.
◦Knowing how to express our ideas: This will allow us to better develop the negotiation, it will allow us
to gain ground and trust with our counterpart.
◦Establish objectives: It will help us define what we want to achieve and how to achieve it.
KNOWLEDGE OF THE COUNTERPART
◦For them, it is necessary to develop a profile and structure a strategic plan to be prepared for all types of
contingencies during the negotiation.This will help us act correctly and precisely, by developing this profile we
will obtain a good advantage when negotiating with our counterparty.
◦NEGOTIATION STRATEGIES:
◦Collect and analyze information from the other party in order to have an advantage at the time of negotiation.
◦Frame the negotiation as a joint effort, that is, show interest in cooperating and achieving a favorable result for
both parties.
◦Searching for differences is identifying differences that exist between both parties such as needs, preferences,
tastes, values, interests, resources, skills, etc., that allow us to create value through exchange.
◦Form coalitions, that is, form temporary alliances that are formed between entities or people, whether naturally
or artificially, in order to defend common interests and negotiate with a third part.
HOW TO MAKE PROPOSALS?
The negotiator must think that he is selling the image of the company, when developing a proposal we must take into account:
◦Body movements and visual language.
◦ Be concise and cautious in our way of speaking.
◦Take a personality and a posture.
◦ Not lie.
◦Establish a negotiation margin.
◦ Do not abuse the methodologies.
MAKE CONCESSIONS:
Concessions are developed when we see that the negotiation is not in our favor, it is when we have to give in and release some concessions, but it is important to
know that we should not give more than the margin of protection, because it is very common for the negotiator to become passionate and can compromise the
company.
INTRODUCE:
We begin by presenting the key elements of the business, this means that there is an exchange of information from one another that should interest the client.
The most important thing is that this information must be very clear and precise, it must qualitatively as well as qualitatively, the advantages of acquiring the
product and/or services in order to interest the customer.
ARGUMENTS:
◦A speech aimed at persuasion as motivation to promote or propose a certain action.The purpose of action with other
interests or motivations of the individual.The most important of the arguments that must have a solid basis to face at
the time of business, the most mistake of thenegotiators is not knowing the products and their benefits, for this reason
they do not have enough arguments to convince the client.
◦DEAL WITH OBJECTIONS:
◦Objections are a defense mechanism that we must undo or they are annoyances about something during a business, such as:
◦Price: The client does not meet the economic requirements.
◦Product: The customer is reluctant to change the product or brand that he usually buys, the product is not among his purchase priorities, or the customer does
not find sufficient reasons to make the purchase.
◦Company: The client does not trust the business or company we represent.
◦Product support and support: You are not satisfied with the after-sales services we offer.
◦Seller: The customer does not trust the person who offers him the product.
OTHERS
◦All these objections are manageable, except those referring to the seller, we can define two types:
◦Doubts: These occur when the customer raises objections, but is interested in the product or service.
◦Excuses: They are given as an excuse not to make the purchase, we must put an end to the presentation or sales
interview because, otherwise, we would be wasting time.
◦CLOSING A NEGOTIATION:
Some consider closing as the most closing is critical for a negotiator and is that:
◦At this point in the process is when an agreement is reached. It is important to find out if the other party
has the ability to follow through with the things they said they would do. This is the time to put common
interests in writing and produce a comprehensive summary of the agreement.